magicJack Shareholders Will Get One Free Share for Every Four Shares They Own: $2.00 Charge is Eliminated

magicJack VocalTec, Ltd. CALL today announced additional details for its planned "Loyalty" Rights Offering to shareholders. In response to shareholders' questions, the Company intends to modify the terms of the previously announced rights distribution. Ordinary shareholders of record as of May 18th, 2012 now will receive one free share for every four shares owned. In addition, each right will include a subscription right to purchase one additional share. The rights will be non-transferable. Owners of listed call options will need to exercise their options prior to the record date in order to take advantage of the free share being offered. Holders of May and June call options should especially take notice of this fact. Be wary of solicitations from callers you have never heard from before offering a great deal to sell your shares before the rights offering and buy call options. Before engaging in any investment strategy, we encourage all shareholders and option holders to consult with a qualified and reputable financial advisor. On the record date, or shortly thereafter, the Company will send a rights certificate and their new free shares to each holder of our ordinary shares that on the record date is registered in our shareholder register maintained at American Stock Transfer & Trust Company, LLC, the transfer agent of our ordinary shares, which is also acting as the subscription agent for the rights offering. In addition the right also includes a non-transferable option (shareholders are not required to take advantage of this option and might only choose to do so if the price is near or above the strike price) to buy one share for every four you own at $23.00 per share. This option will last for up to 30 days.